“The discussion about tariffs is at a relatively early stage...people really don’t see yet any implications in the near term for the outlook because we don’t know the extent to which the tariffs will actually come into effect and, if so, how big that effect will be,” Powell said following a speech in Chicago.

“It really is too early to say,” he added.

China warned on Friday it could respond with a “fierce counter strike” of fresh trade measures if the United States follows through on President Donald Trump’s threat to slap tariffs on an additional $100 billion in Chinese goods.